Empirical Study On The Reform Of Solvency Supervision System And The Operation Efficiency Of Life Insurance Companies

Since the implementation of the C-SI,China's life insurance industry has developed rapidly and has achieved some remarkable results.However,with the changes in the insurance market and regulatory environment,and the prominent role of marketization in resource allocation,on the one hand,it has strengthened the autonomy of life insurance companies in terms of product pricing and investment,on the other hand,it has also exposed the C-SI.To reflect the shortcomings of not comprehensive risk and unscientific measurement risk,solvency reform is imperative.Based on this,China's insurance regulators began to explore a new generation of risk-oriented solvency supervision system that reflects both China's national conditions and the world in 2012.China's risk-oriented solvency supervision system(C-ROSS),which lasted for 3 years and eventually began trial operation in 2015.The C-ROSS adopts more comprehensive and scientific regulatory indicators,not only changes the scale-oriented drawbacks of C-SI,but also embeds the concept of risk and value in the management of domestic life insurance companies.The market-oriented reform of rates,the use of insurance funds and the transformation of the industry play a pivotal role.All along,due to the late development of life insurance business in China,the level of development is relatively low.In addition,under the scale-oriented C-SI,the life insurance industry is unilaterally pursuing the growth of premium scale,ignoring efficiency and sustainable development of the company.However,with the deepening of market-oriented reforms and industry transformation,objectively,there are higher requirements for the risk management level and efficiency of life insurance companies.The domestic life insurance industry needs to get rid of the inefficiency.In the context of the implementation of the C-ROSS,China's life insurance industry has been criticized for its weak risk management awareness and low operating efficiency.If it can be improved,what way? However,domestic literature on solvency reform and company efficiency research is rarely involved,but efficiency issues are one of the core issues that every life insurance company needs to pay attention to and solve.Therefore,the research in this paper not only has great theoretical significance in enriching and expanding efficiency research,but also has profound practical significance in providing a new path to test the implementation effect of C-ROSS and improve company efficiency.This paper can be divided into three parts: asking questions,analyzing problems and solving problems.The first part is the first chapter of this article;the second part is the core part of the paper,including chapters 2,3,4,and 5;the last part is the sixth chapter of this article,the details are as follows:The first part is to ask the question,which is the first chapter of this article.Through the extensive reading of the literature and the implementation of the specific C-ROSS system,the research object of this paper – C-ROSS has an impact on the efficiency of life insurance companies.On this basis,the research significance,research ideas and main research methods of this paper are expounded.The main innovations and shortcomings of this paper are presented.The second part is the analysis of the problem which is the second section of this article.According to the logical order of the research questions,it is divided into the following four chapters.First,it is the second chapter of this article.On the basis of studying the classical theory of efficiency,the efficiency connotation and its main classification are defined,and the efficiency types studied in this paper are determined.In addition,the parametric and nonparametric methods of efficiency measurement are further introduced and compared,which is the selection of the empirical model.The selection of indicators lays the theoretical foundation.Through the comparison of models,this paper uses SFA model as the main efficiency measure model.Second,it is the third chapter of this article.It mainly introduces the concept of solvency,the content of C-SI and “reimbursing C-ROSS,and the comparison between C-SI and C-ROSS.Through the definition of the concept of solvency and the comparison of the two systems,it lays a good theoretical foundation for the logical deduction of the following research hypotheses.Again,this is the fourth chapter of this article.Chapter 4 introduces the implementation of C-ROSS to influence the company's product design and asset allocation through a series of institutional design,and to improve the company's product design and asset allocation capabilities through minimum capital constraints,and reduce the insurance risk of life insurance companies.Market risk and credit risk.In addition,by reimbursing the C-ROSS of IRR and SARMRA,the company is encouraged to strengthen its risk management level,prevent market-based constraints to prevent difficult risks,and comprehensively enhance the company's risk management capabilities.On the one hand,the improvement of the risk management level can increase the life insurance company's underwriting profit and investment income,on the other hand,it also reduces the life insurance company's financing cost and solvency capital cost,and improves the efficiency of life insurance companies.Therefore,it is concluded that the efficiency path of the CROSS of life insurance companies is to improve the risk management level of life insurance companies,reduce the risk of life insurance companies and improve the efficiency of life insurance companies,and obtain the contents of the empirical part.Finally,it is the fifth chapter of this article.This is not only the core content of this part,but also the core content of this article.By selecting the input-output variables of life insurance companies,the C-ROSS dummy variables,the company size,company establishment time,market share,listing dummy variables and foreign dummy variables are controlled.Through the SFA model,the implementation of C-ROSS is obtained.Afterwards,it has improved the efficiency of life insurance companies,and measured the risk management level of life insurance companies through Z_score indicators and conducted a mediation effect test.Finally,it was concluded that the implementation of C-ROSS significantly improved the risk management level of life insurance companies,and thus improved The efficiency of life insurance companies.The third part is the sixth chapter of this article.This part of the content first summarizes the research results of this paper.From the perspectives of product design,asset allocation capability and risk management capability,the author puts forward relevant suggestions for improving the efficiency of life insurance companies.The innovation of this paper is as follows: Firstly,it is different from the previous research on the operating efficiency of insurance companies.This paper studies the operating efficiency of insurance companies based on the perspective of C-ROSS and has some innovations in the perspective of insurance company management efficiency;Secondly,this article does not directly study the impact ofC-ROSS on the operating efficiency of insurance companies,but tries to analyze whether the CROSS of insurance companies improves the operating efficiency of insurance companies through the intermediary variable of risk management level,and through the mediation effect test method.Verify that this conduction effect is present.The shortcomings of this paper are as follows: First,the research sample is relatively short-term,because the C-ROSS has been trial-run since 2015,and because the industry data has not been announced in 2018,the actual C-ROSS implementation is The data is only 3 years old,and there may be some deviations from the empirical results due to the small amount of data.Secondly,the research sample does not include the property insurance industry.Since the life insurance industry and the property insurance industry are significantly different in actual operations,this paper mainly analyzes the impact of the C-ROSS implementation on the life insurance industry,but does not join the property insurance industry for efficiency comparison.